Indian Shaving Products get A1 plus

ICRA has reaffirmed the A1 plus rating assigned to the Rs. 15 crore commercial paper programme of Indian Shaving Products, indicating highest safety. The prospects of timely payment of debt/obligation is the best.

The highest safety rating takes into account ISPL's strong position in the shaving products market, low gearing levels, comfortable coverage indicators and liquidity support from the parent company. The rating also factors the likely merger of Wilkinson Sword and Duracell with ISPL.

ISPL is 51 per cent owned subsidiary of The Gillette Company of the U.S. and is engaged in the manufacture and marketing of shaving products in India. It also trades in Oral-B tooth-brushes and Duracell batteries produced by the group companies in India and shaving products imported from The Gillette Company, Boston. ISPL has manufacturing facilities for double edge blades and twin blades at Bhiwadi, Rajasthan.

ISPL has maintained a high growth rate in operating income in each of the last four years due to volume growth in the shaving products as well as new product launches in writing instruments, personal care and home products segments.

The profitability of the merged entity is expected to improve in the next two years due to better profitability of ISPL and turnaround of Duracell and Wilkinson. The liquidity and the debt servicing ability of the merged entity is expected to remain comfortable in the short term.

Corporate Bureau

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Section  : Business
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